AUD/USD Forecast Video for 04.04.23
Australian Dollar vs US Dollar Weekly Technical Analysis
The Australian dollar has rallied a bit during the trading week but continues to pay close attention to the 0.67 level, an area that has been a bit difficult to overcome. When you look at the chart, you can see that we had clearly been in a downtrend, and that should continue to be the case going forward. After all, the US dollar continues to enjoy the benefits of higher interest rates in America, but we also have another reason to think that this market may drum, due to the fact that the Australian dollars is so highly sensitive to global growth and of course commodity markets in general which are all intertwined.
Underneath, the 0.66 level should offer a little bit of support, but if we break down below there it almost certainly means that we will be challenging the 0.65 level. Anything underneath there opens up the possibility of a move to much lower levels. Rallies at this point in time should continue to see plenty of sellers, and therefore it’s likely that we would see plenty of a “fade the rally” type of market. It’s not that we break above the 0.68 level that I think we have enough momentum to continue going higher, perhaps reaching towards the 0.70 level.
The 50-Week EMA is close to the 0.69 level, and that could offer a little bit of a technical resistance barrier, but at this point it’s more likely than not going to be a situation where there are plenty of concerns out there to keep the Aussie a bit soft in general.
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This article was originally posted on FX Empire